The near-term outlook for the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains tilted to the downside as it struggles to push back above the 10,470 pivot, and the bearish sentiment surrounding the greenback may gather pace over the near-term as Fed Chair Janet Yellen remains in no rush to normalize monetary policy.

Indeed, Chair Yellen retained a rather dovish tone for monetary policy and highlighted the ‘continuing commitment of the FOMC to maintain the appropriate degree of accommodation to support the recovery,’ and the reserve currency may continue to trade heavy going into the next interest rate decision on April 30 unless we see a material shift in the Fed’s policy outlook.

Meanwhile, the market reaction to the Bank of Canada (BoC) meeting and its quarterly monetary policy statement may be short-lived as Canada’s Consumer Price report is expected to show heightening price pressures in March, and a stronger-than-expected inflation print may ultimately spur a near-term pullback in the USD/CAD as it limits the central bank’s scope to further embark on its easing cycle.

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